We can add Johnson and Johnson to the list of companies whose once proud reputation for quality and safe products is in jeopardy. Toyota is on that same list. This type of crisis requires open communications with key stakeholders, especially customers who may stop buying your product. That doesn't seem to be happening at J and J.
The company issued about 15 recall notices in 2010. (For more background, v

isit my posts on September 18 and October 31, 2010) The latest recall came January 16 when J and J, in consultation with FDA, recalled six varieties of Benadryl, 10 types of Sudafed, Sinutab, and 37 different types of Tylenol. The recall affects only products still in wholesalers' warehouses; products on the shelf are safe.
"The recall was due to a review of cleaning procedures of equipment that was either not properly documented or done insufficiently.... Although the latest Johnson and Johnson recall does not directly impact consumers, it may cause many to question the reliability and quality of the company’s products." (
http://www.efitnessnow.com/news/2011/01/16/update-johnson-johnson-recalls-45-million-products)
CNN made an identical observation this morning. J and J's reputation, and therefore sales, is at stake. The New York Times, January 15, wondered in a headline, "Can Johnson and Johnson Get Its Act Together?" (
http://www.nytimes.com/2011/01/16/business/16johnson-and-johnson.html)
The Times article went on to say, "...another of J and J’s continuing problems: It must persuade millions of disappointed customers to once again pay a premium for products that may no longer seem to be of any higher quality than the less expensive store brand."
Remember that company whose response to the Tylenol tampering in 1982 became a case study for communicators? My memory is fading. J and J leaders seem to have total amnesia.
"YouGov BrandIndex, a market research firm that tracks consumer attitudes, says it has noticed a steady, albeit not steep, erosion over the last 18 months in how consumers perceive not just drug brands like Tylenol but also J and J. While many consumers are still loyal, says Ted Marzilli, a senior executive at the firm, the company needs to avoid death by a thousand cuts. 'They’ve really got to stop the bleeding,' Mr. Marzilli says. 'What the company really needs to do is not have any more recalls for six months, nine months, 12 months.'”
But that isn't happening. "In July, McNeil (a unit of J and J) submitted a plan to the F.D.A. detailing how it intends to overhaul its operations. To comply with regulatory standards, McNeil is undertaking thorough manufacturing and quality-control reviews for all its products, (Spokeswoman Bonnie) Jacobs says. That means the recalls may continue. Last Thursday, Ms. Jacobs said the company would 'take whatever steps are needed to ensure our products meet quality standards, including further recalls if warranted.'"
What has the company done, you ask, to communicate that message? Nothing at all on its website. (
http://www.jnj.com/connect/) Instead, there are pictures of smiling people who apparently owe their health to J and J's responsible production practices. There is no news release about any recall on the "news" page. (
http://www.jnj.com/connect/news/all) For me, anyway, the whole site doesn't ring true.
Maybe the company isn't "out there" because, as the Times noted, the recalls and drop in confidence has done little to affect the bottom line because J and J is so enormous. Maybe it's because, according to the Times, "Consumers have typically been willing to forgive a brand for one incident or product problem, industry analysts say, if a company acts swiftly to rectify the situation and to issue an apology." So if we hide, maybe most people won't notice how many times our products have been recalled.
Whatever the reason, J and J doesn't appear to be taking advantage of the media at its disposal. It may share its messages with reporters when asked or with curious board members, shareholders, and analysts. But what about the microbiologist at the Feinberg School of Medicine at Northwestern, who said he is considering going back to generics? Or what about the blogger in Silver Spring, Maryland, who wrote a post last spring, “Makers of Tylenol, I’m Disappointed in You”?
Too bad it can't be 1982 again.